Democratic presidential candidate Vice President Kamala Harris has put forward economic policies so terrible that even her own supporters have criticized them as “tricky” and “unwise.”
On Friday, Vice President Clinton McNeverden unveiled an absolutely insane economic plan ripped straight from the playbook that destroyed the economies of Venezuela, Cuba and the Soviet Union. Price controls have never worked. And yet, in a sparsely attended policy speech in North Carolina on Friday, she Sustained…
“My plan includes new penalties for opportunistic companies that take advantage of the crisis to break the rules,” Harris said.
That means unelected bureaucrats at the Federal Trade Commission get to decide how much your local supermarket can sell for a loaf of bread.
Even the far-left CNN “experts” Understand This insanity will either 1) drive prices up even further or 2) create Soviet-style shortages, rationing, and black markets.
…[W]While Harris argues that her proposal “will help make the food industry more competitive,” Roberts said it would have the exact opposite effect: “It will likely maintain the status quo,” she said, because the proposal would prevent new competitors from entering the food industry with the hopes of capturing larger profit margins. Competition would help lower prices in the long run.
Jason Furman, the Obama administration’s top economist, echoed Roberts’ view that anti-price gouging laws could inadvertently harm consumers. “This is not smart policy,” he said. “I think our best hope is that this is just rhetoric that never becomes reality.” The New York Times“There’s no good here and some bad.”
Harris is also offering $25,000 in government assistance to first-time homebuyers. The Washington Post This is called “gimmick” — and the results were disastrous.
“And by the end of my first term, we will create 3 million new homes and rental units to end America’s housing shortage,” Harris promised. “While we work to end the housing shortage, my administration will also provide first-time homebuyers with $25,000 for a down payment on a new home.”
of The Washington Post Not impressed:
Kamala Harris’ speech on Friday was her chance to tell voters specifically how, if she were president, she would manage an economy that many feel is not working for them. Unfortunately, instead of offering a substantive plan, she squandered the time with populist stunts.
more:
Fact: These promises may end up having conflicting results. By enabling more Americans to buy homes, Harris’ down payment assistance proposal would almost certainly increase demand at a time when the U.S. housing shortage is already estimated at between 3 million and 7 million homes.
Harris’ proposal, which would give tax incentives to builders to encourage the construction of houses and apartments, would address that concern, but experts cite many reasons for the housing shortage that tax incentives cannot solve, including strict zoning laws, the rising cost of building materials and even a shortage of construction workers.
If we really want to help first-time home buyers, we have to lower interest rates. The fastest way to lower interest rates is to get our economy going. The fastest way to get our economy going is to get inflation under control. The fastest way to get inflation under control is to create a domestic energy boom. Harris won’t do that. Former President Donald Trump did it in his first term and has promised to do it again. Energy affects home prices. allIf energy costs are low, all Costs decrease because it is cheaper to manufacture, transport and store all.
If inflation subsides, the Federal Reserve can lower interest rates, which could save homebuyers hundreds of thousands of dollars and reduce their monthly payments to something more affordable.
Let me get scientific…
If you take out a 30-year mortgage for $300,000 at today’s interest rates, 6.55 percentyour monthly mortgage payment will be $1,906After 30 years, you will have paid back the original $300,000 plus $386,000 in interest, for a total of $686,000.
Ah, but when President Trump leaves office in January 2021, the average interest rate on a 30-year mortgage will be 2.65 percentThat means that same $300,000 mortgage now has a monthly mortgage payment of just $.1,208Then, after 30 years, you’ll have paid back the $300,000 plus $135,000 in interest for a total of $435,000.
That means that under Trump, the same $300,000 mortgage would cost just $435,000, instead of $686,000 today.
Under Trump, monthly mortgage payments were just $1,208 instead of the current $1,906.
Harris might give you $25,000, but if interest rates stay the same (and nothing she’s proposing will lower them), after 30 years, even with the $25,000 in free Kamala Money, you’ll end up paying an extra $250,000 for your home, and an extra $700 a month in monthly mortgage payments.
John Nolte’s first and last novel Borrowed time, Winning 5-Star Rave Reviews Submissions from our everyday readers. You can read excerpts here here And a detailed review here. Also available in Hardcover and Kindle and Audiobooks.
